AEO STATUS HELPING A SOFTER BREXIT
KC Group Shipping has been awarded Authorised Economic Operator (AEO) status as we work to navigate our client base through the unchartered waters of Brexit.
AEO status is given to organisations that demonstrate that they operate within the high standards demanded of an international supply chain. We received our AEO status from HMRC as part of the government’s bid to roll out the scheme.
“Achieving AEO status has demanded diligent processes and procedures from our end”.
Dale Minks, KC Liner Systems and Process Manager.
He added: “Clients entrust their consignments to KC, and they need the confidence that they are supported by an organisation which is committed to efficiency for their business.
“Legislative procedures for their goods are critical. It was therefore clear that adopting AEO status now gives us a competitive advantage, and our client base peace of mind”.
Efficiency and compliance at the heart of a mark of quality
Experts believe AEO will play an important role in the aim to create “frictionless borders” after the UK leaves the EU.
The Chartered Institute of Logistics and Transport (CILT) is amongst those calling on more companies involved in the supply chain to look to win AEO status.
CILT describes AEO as “an internationally recognised quality mark indicating that your role in the international supply chain is secure and that your customs controls and procedures are efficient and compliant.”
Countries across the globe are developing AEO schemes and negotiating mutual recognition schemes with each other. However, according to CILT figures in May this year just 568 companies in the UK held AEO.
As well as gaining AEO status, KC Shipping’s team is already working with clients to prepare plans on both ‘hard’ or ‘soft’ Brexit scenarios and we are providing them with the option to out-source all customs paperwork and formalities in preparation for leaving the EU.
Operating to the highest industry standards
David Milne, KC Group Managing Director, said: “AEO is all about giving our clients peace of mind and security, both now and post-Brexit. It is about operating to the highest standards in a truly global industry.
“We have recognised the importance of aligning our business to these standards and to also support our own wider industry with initiatives which deliver a safer, transparent approach throughout that global logistics supply chain.
“This transparency and the security and quality criteria that AEO status demonstrates will be vitally important in the post-Brexit world as we look to continue trading with our former EU partners, and with the rest of the world, in as effortless a manner as possible”
“There will be a need in this new landscape to have as few logistic delays as possible as well as the lowest administrative costs. Security and standards of the highest level will be needed to achieve this.
“We are increasingly hearing from industry experts that AEO status will be crucial if we are to see the smooth transition of borders to market after Brexit."
“The more AEO status organisations we have operating here, the more chance we have to achieve this. AEO status is also likely to be essential if UK companies are to remain competitive in the global market.
“Whether it is a soft or hard Brexit our expert team has the experience and knowledge to address whatever customs procedures are implemented. No-one actually knows the impact of Brexit but whatever the plan KC is ready.”
Confidence and a ‘seamless’ process
He added “Developing and maintaining a healthy international goods supply chain is essential for the industry, sectors and worldwide end users.
“Sectors and companies working with organisations awarded the AEO status, including manufacturers, retailers and bonded warehousing businesses, are given the confidence that their goods meet legislation and have a seamless process to transactions.”
If clients do not work with an AEO accredited organisation, and use a customs special procedure such as a bonded warehouse, inward and outward processing or end use, they need to hold a mandatory financial guarantee for shipping consignments.
AEO accredited logistics providers acting on behalf of customers will also endure less physical checks as KC Group Shipping’s standards meet the strict criteria of HMRC
David added: “The process will become more laborious and costly for the shipper, which will be passed to the end user.
“Our AEO certificate and status will improve practical aspects for our clients such as fewer physical and administrative checks, and a priority arrangement when controls are performed. Our clients can also be safe in the knowledge that security is paramount for their supply chain.”
Dale Minks, KC Group Shipping Systems and Process Manager, said: “Many KC clients have already found the tangible benefits that working with an AEO certified business brings, and the advantages are already being relayed back to us”.
Dale continued: “AEO is a true step change, more than ever our industry needs to challenge us to do things better and benefit our clients. This is what makes the industry robust and in turn improves environmental supply chains”.
KC Group Shipping’s growth and strategy within the shipping industry has been driven by its logistics services and developed through its sector expertise.
To find out how your business can benefit from our AEO status, speak to a KC Group Shipping adviser at 0141 420 1700 or email .